BUS681: Business and Compensation
Instructor: Leo Smith
September 7, 2014
Performance Management Page 1
Performance Management is a structured way for an organization to improve the effectiveness of their employees. In this paper we will examine aspects of performance management and how it effects organizations and their employees.
When we think about performance on the job, we often consider productivity or we think of how well a person does their job. We don’t often realize just what is involved in seeing how a person’s performance ...view middle of the document...
* Regular communication sessions provide opportunities for objective discussion of the role and opportunities for changes
* Job satisfaction, productivity and employer loyalty to the business are likely to increase as employees feel that their work is recognized and valued
* Staff that are not performing well have problem areas clearly identified and are given the opportunity to improve
* Situations of underperformance are addressed early and unfair dismissal claims are minimized. (Performance Management. (n.d.).
Now that we are aware of what benefits come from a performance management plan, we can now look at what details make a great management plan. If we have all the knowledge and follow the plans, but do not have the idea plan, it can lead to an awkward situation for both managers and employees. This means if neither the managers nor the employees understand the process no one really knows what is going on within the organization and it only leads to more questions and frustration. Performance often tends to have a negative stigma for many employees due to the fact that no matter what they present to management, it is not good enough to receive an increase in pay or a bonus of any type.
As stated in discussions, often the goals are set to high and are no way obtainable. When we review performance management, we must realize that the goals must be obtainable for the
Performance Management Page 3
employees. In return these reachable goals boost morale, improve performance and become a better work environment for managers and employees. Once a goal is set and is continually reached or better yet, over-reached, then the goal can be increased. To make performance appraisals effective, managers and employees must discuss the goals and what is expected from the employee and the team as a whole. If the employee is having difficulty reaching their goals they also need to discuss what stumbling blocks are in their way and how they can remove these blocks.
When we review the information in our text, we can come to the understanding that we need to make sure our performance standards are clear. We also must realize the stumbling blocks that can occur in our process and work through these stumbling blocks. For example, rating errors almost always occur, according to our text rating errors reflect differences between human judgment, processes versus objective, accurate assessments uncolored by bias, prejudice, or other subjective, extraneous influences. (Martocchio, 2011)
Over the past few years, there has been a surge of interest in pay for performance. One by-product of this trend is that more HR executives are placing pay-for-performance technologies - systems that successfully automate and...